ITW vs PKG: Correlation
Illinois Tool Works (ITW) and Packaging Corporation of America (PKG) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and PKG?
On 3 years of weekly data the ITW/PKG correlation comes out at 0.57, moderate. The relationship has been stable: the 1-year correlation (0.57) sits close to the 3-year figure. The 5-year figure is 0.51, and annualized covariance runs at 256.9 %².
By 3-year correlation, PKG places #39 of the 81 assets tracked against ITW. The trailing year gives PKG the advantage: +8.2% versus +18.5%, a 10.3-point spread. On a rolling one-year basis the correlation drifted between 0.34 and 0.75, a moderate band.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ITW vs PKG: side by side
| ITW (Illinois Tool Works) | PKG (Packaging Corporation of America) | |
|---|---|---|
| 1-year return | +8.2% | +18.5% |
| 5-year return | +36.1% | +86.8% |
| Volatility (ann.) | 19.0% | 23.5% |
| Beta vs S&P 500 | 0.64 | 0.52 |
| Max drawdown (3Y) | -20.6% | -28.4% |
| Market cap | $80.2B | $21.7B |
| P/E (trailing) | 25.8 | 31.6 |
| Dividend yield | 2.26% | 2.13% |
| Sector / category | Industrials | Materials |
Year-by-year returns
| Year | ITW | PKG |
|---|---|---|
| 2022 | -8.5% | -2.6% |
| 2023 | +21.6% | +31.9% |
| 2024 | -1.0% | +41.7% |
| 2025 | -0.4% | -6.1% |
| 2026 | +15.8% | +19.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and PKG good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and PKG?
As of 2026-08-27, the correlation of weekly returns between ITW and PKG is 0.57 over 3 years, 0.57 over 1 year and 0.51 over 5 years.
Is PKG a good diversifier for ITW?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-pkg.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-pkg/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ITW correlations · PKG correlations
